Keeping the best

Never mind the unemployment figures – the experts say that good, experienced people are still in short supply in the ports sector and, according to Mark Charman, chief executive of Faststream Recruitment Group, smart companies are “working hard to bear-hug the good people they have”.

“Coming out of the credit crunch, it is still very difficult to get people to change jobs,” he says. “People are still cautious about taking up opportunities and consequently it is very difficult to find good people. Engagement and retention are hot topics right now – the best talent is being nurtured and developed.”

Phil Parry, chairman of Spinnaker Consulting, has a similar message. “You look at the news day in, day out and the unemployment figures, and think surely this isn’t an issue and surely people are grateful to have a job – but retention is still a big, big issue. In this new world of work, unemployment is high, but skilled and talented people are in short supply.”

Across technical, commercial and professional sectors, Spinnaker had more vacancies in the first quarter of this year than in the same quarter of 2011 or 2010: “There are loads of vacancies; the issue is filling them,” says Mr Parry.

What, then, are companies doing to retain their staff? According to Phil Parry, long-term incentives – LTIs – are considered the big strategic approach right now. Major employers across the shipping sectors want to know more about LTIs that tie employees’ rewards into the success of the business, frequently offering share options to be taken up at some future date.

“I think they are a good idea and they fit the mood of the moment; but I do caution clients – what we hear from staff is that unless they are in the very, very higher echelons of business, they don’t seem to value them very highly,” he says. One contact memorably told him: “Frankly, I’d rather have the cash. Shares are going up and down, I don’t feel huge amounts of loyalty to the business and what I feel is that I am having cash kept away from me.”

So how about real money now – bonuses? These are obviously a useful tool, he says, “but the bonus’ true value as a retention tool is at the upper end in cash value terms. An employer known for its generous bonus scheme does tend to be an employer that few people leave – so bonuses do work.”

Ultimately, people don’t tend to leave because of money – but they do tend to say because of it, he says. “However, we are forever advising people that it isn’t just about money; it is about how you treat people.”

And in that respect, it is the shorter-term things – the tin of cookies, the basket of fruit – that can work. “It’s a bit like taking care of the pennies and the pounds take care of themselves. We ourselves have a system where we finish early once a month on a Friday and take our people out to the pub or a restaurant. It produces a feeling of camaraderie. We also give out little prizes – lottery cards, cakes, chocolates. They are tiny things but our staff have certainly responded.”

But remove these “little” things and you do so at your peril, he warns. A small thing can become a huge thing if you take it away. “One shipping employer, as they were going into the recession, withdrew the daily basket of fruit – and created a near mutiny as a result. They saved a tiny amount of money in the scheme of things, but this was something that was liked and appreciated, and a health-related small benefit. Removing it was regarded as uncaring and petty – the employees ended up seeing the original gesture as having just been cynical, as in ‘you don’t really care, do you?’ It created absolute uproar.”

Mark Charman lists trust, engagement and authenticity as key factors – if these are missing, you may find your best people walking out the door.

“Can people really be themselves in the place they work? What about fulfilment – do they feel they have an opportunity to give something back?”

He advises employers to consider their employees’ engagement in the organisation. How do they feel about the team they work with, the management, the company’s culture and values?

“The old watchword used to be labour turnover; nowadays it is all about retention rates and benchmarking those rates against similar organisations,” he says. “Many organisations will take the view that some turnover is healthy, bringing in new blood. But there comes a point at which turnover isn’t healthy.”

He says appointing an independent organisation to conduct exit interviews with departing staff is gaining in popularity – people who have already decided to leave your company are likely to give honest, straightforward feedback, and perhaps the real reasons why they are leaving, and key trends, can emerge.

Faststream was recently recognised by the Sunday Times as one of the top 100 best small companies to work for – these awards are based on employee surveys as well as a site visit.

Mr Charman says: “The consistent thing that came through for us was that we are a fun place to work, where people feel they can make a difference. Also, we are considered really good at communicating with our people, whether it’s good or bad news. When you don’t communicate with people, they make up their own decisions about what is happening and the rumour mill goes into overdrive.”

He agrees that engagement activities don’t have to cost a lot of money – they could even be free. “Look at value, ethics and culture – for example, is there an opportunity for charitable work? Young people, particularly Generation Y, want the opportunity to feel they are giving something back.”

The ports sector is no different to any other business sector in respect of developing and retaining talent, he says. “Look at some of the some of the things other companies do – ice cream? soft drinks? free food? These things go a long way because they improve people’s working environment.

“Then there are obvious reward mechanisms – gift vouchers, a day of golf, a pamper day. And a lot of organisations do well in recognising the importance of the family – for example, a crèche, family days, bring your family to work day, children’s parties.”